Can Argentina’s Dead Cow Shale Patch Save Its Economy? | OilPrice.com

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Can Argentina’s Dead Cow Shale Patch Save Its Economy? | OilPrice.com
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Argentina was hit especially hard by the Covid-19 pandemic and has struggled to recover ever since, though its Vaca Muerte shale patch offers some glimpse of economic hope

of 16 billion barrels of shale oil and 308 billion cubic feet of shale gas making it the world’s second-largest shale gas deposit. Since the pandemic oil and natural gas production in Argentina, because of drilling in the Vaca Muerta, keeps climbing to record highs. The rising volume of activity in the hydrocarbon rich geological formation is supported by not only higher oil and natural gas prices but also tax and regulatory reforms implemented by Argentina’s national government.

There are signs of solid production growth for the Vaca Muerta. Drilling activity is rising, with the Baker Hughesindicating there were 53 active rigs at the end of August 2022, or two higher than a month earlier, seven more than the same period during 2021, and four-times greater than August 2020. Fracking activity is growing at a notable pace, and data from the Ministry of Economy shows a marked increase in the volume of wells completed.

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